Key Takeaways
- Silver prices have reached a three-year high of $29.80 per ounce due to high demand as a safe haven amid geopolitical tensions.
- Expectations are for silver to reach $35 per ounce before the end of 2024.
- Technical analysis suggests a positive trend with targets at $40 and $48 in the long-term.
- The Silver Institute predicts silver demand to hit 1.2 billion ounces in 2024, signaling a potentially great year for the metal.
Silver Analysis and Price Predictions
Silver prices have approached the $30 per ounce mark, marking a significant three-year high since 2021. The surge in price can be attributed to increased demand for precious metals as a safe haven due to tensions between Iran and Israel. Silver has seen remarkable gains in the last quarter of 2023 and the first quarter of 2024, with a strong start in the second quarter indicating potential further rises throughout the year. Analysts predict that silver may hit the $35 per ounce mark by the end of 2024.
Technical Forecasts
Analyzing the daily chart, it is evident that silver has been moving in an upward trend since the end of the first quarter of 2020, with the price nearing the $30.06 peak. Technical indicators suggest continued upward momentum, with targets set at $35.00 and beyond. Additionally, positive patterns such as an ascending triangular flag further support the potential for breaking the $30.00 barrier.
Fundamental Analysis
The Silver Institute predicts a strong year for silver in 2024, with demand expected to reach 1.2 billion ounces. Actual demand for the metal is set to increase, driven by industrial activity worldwide. The recovery in the consumer electronics sector is also expected to boost demand for silver, along with strong jewelry purchases.
In conclusion, while hurdles such as economic slowdown in China and potential delays in U.S. interest rate cuts could impact silver prices in the short term, the overall outlook remains positive for silver as retail traders and industry experts alike anticipate further price increases in the coming years. Silver may be poised to outperform gold in terms of price growth, presenting a lucrative opportunity for investors.